Experian Automotive released an industry analysis that showed year over year 60-day car delinquencies were up by .02 percent; the first increase since the Great Recession. But, there is no reason to panic just yet, according to Experian. The autoloan business is still healthy.

“When you take a step back and look at the market compared to where it was three years ago, we still have remarkable stability,” said Melinda Zabritski, director of automotive credit for Experian.

According to this article, “By comparison, three years ago, 30-day delinquencies rose to 3.06 percent in the second quarter of 2009 and 60-day delinquencies were 0.80 percent. Combined, they accounted for $25.5 billion in at-risk loans, according to Experian.”

While this information is certainly interesting, if not mildly concerning, I found it fascinating that neither Experian nor the writer of this article bothered to try to explain why car loan delinquencies were up in the fourth quarter. This information would have been much more useful if it included potential explanations and, also, an Experian’s reasons for not being concerned about the uptick in missed car payments.

I have no ideas as to why that is, do you?

The best part of this article was the writer’s suggestions for people if they are be 30 to 60 days delinquent on their auto payment. Here are his tips:
“1. If you fall behind in your car payment, do not hide from the finance company. Call them, and ask to speak to a loan counselor. If it’s a temporary problem, they will often give you a 30-day grace period. If it is a bigger problem, talk to them about the situation and see how you can avoid a black mark on your credit history.

2. See if you can refinance the car. Le’s say you are paying $300 a month on a vehicle that still has two or three years left on the loan. Check to see if you can refinance the car to lower your payments by extending the loan period a couple of years.

3. It sometimes happens that the car you are paying off is worth more than you owe. If that is the case, you should sell the car and see if you can replace it with something used until you are back on your feet. Most often, though, people owe more than the car is worth.

4. You might be able to get someone to take over the loan for you, but that will require transferring title and actually selling it. Talk to your lender about restrictions on such a transaction.

5. Why do you want to avoid default and repo at all costs? Two reasons. It messes up your credit rating, making all the borrowing you will do for some time more expensive. Also, after a repo, the finance company sells the car at auction, often for less than it’s worth. And you, the owner, will be on the hook for the balance, and with no car. That’s a terrible outcome.”